Employees’ behaviour and attitudes towards work are

14 Gusau International Journal of Management and Social Sciences, Federal University, Gusau, Vol.4 No. 1, April. 2021

Effect of Business Ethics on Work Place Deviant Behavior in the Food and

Beverages Company in Kaduna Metropolis

1Hadiza S. Abubakar, 2Ahmed B. Abdul-Qadir & 3Hafsat Yahaya Yauri

1Department of Business Administration, Kaduna State University, Nigeria 2Department of Business Administration, Federal University Gusau, Nigeria

3Department of Business Administration, Kaduna Polytechnic,

Corresponding Author email: [email protected]

Abstract

This study examines the effect of business ethics on workplace deviant behavior in the food and

beverages company in Kaduna metropolis. The source for data collection was primary. The study

adopted the survey research design. The sample size of the study was 297 computed using Krejcie

and Morgan (1970) sample size formula. The method for data analysis was multiple regression. The

findings of the study show that the impact of discipline on workplace deviant behavior of Food and

Beverages Companies is negative and statistically significant effect on WDB. This can be confirmed

by a coefficient value of -0.55 which is statistically significant at 1%. This implies that for every 1%

decrease in DCP the WDB of Food and Beverage Companies will Increase by 0.55. The study

concludes that discipline is found to have significant negative effect on Workplace Deviant

Behaviour. The study recommends that firms, management and organizations should pay greater

attention to significant variables such as the effect of discipline and trust in determining their

optimal ethical issues in management by maintaining a minimal work place deviant behavior.

Keywords: Discipline, Ethics, Workplace, Deviant Behaviour

Introduction

Employees’ behaviour and attitudes towards work are essential for any organization

to achieve its vision and objectives. These have further scale-up the importance of

the area to managers and researchers, increased competitiveness and enhanced

organisational efficient performance, and organisational images. Western

researchers have highlighted the issue of workplace deviant behaviour with respect

to property deviant which are more higher in the public sector compare to private

sector (Alias, Rosdi, & Khan, 2017). In Asia, an analysis of the Industrial Law

reports in Malaysia from the year 2000 to 2009 has simulated the presence of

deviant attitudes among the employees of Malaysian public and private sectors

(Hwa & Amin, 2016).

Business ethics provides a direction towards focusing on the purpose behind such

challenges and the means in which they can be dealt with by the management.

Furthermore, efficient business ethics attract investors due to high ethical values of

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Gusau International Journal of Management and Social Sciences, Federal University, Gusau, Vol.4 No. 1, April. 2021 15

the organization, consistent business ethical behavior helps in building a good

reputation for the organization and competitive advantage. Business ethics face

ethical lapses, unintentional misconduct, and complacency from employees when

they observe serious misconduct (Khan, 2014).

The scandals and unethical conduct that have occurred in different companies in

Nigeria such as Cadbury, Nestle and Nasco have brought to the understanding that

some people deliberately break the law or engage in inappropriate behavior

(Adenubi, 2000). Business ethics provides the understanding on organizational

values and compliance of the system, in order to prevent people from engaging in

unethical conduct. It requires training and constant vigilance and as such the food

processing industry in Nigeria is not void of such approaches. Almost all industries

in Nigeria have their business ethics and these in most cases are provided to

employees to ensure smooth running and efficiency in business operations.

Most of the workplace deviant behaviour exhibited in beverages companies in

Nigeria has not been given adequate attention in the literature. Hence, the study

intent to make significant contributions in investigating the impact of business

ethics on workplace deviant behaviour with respect to property deviant in the food

processing industry in Kaduna metropolis, Nigeria. Hence, this study further

investigate the relationship between organizational trust (OT), organizational

justice (OJ) and organizational discipline (OD) on property deviant (PD) of food

and beverages industry in Nigeria. The main objective of this study is to examine

the effect of business ethics on workplace deviant behavior in the food and

beverages company in Kaduna metropolis.

Conceptual Framework

Concept of Ethics

Shaw (2014) defines ethics as principles or values that guide behavior, within the

organizational settings, these values are embodied in virtues such as honesty,

compassion and loyalty (Velasquez 2006). Because ethics deal with distinctions

between right and wrong (Ferrell, Fraedrich &Ferrel 2014), they are found on

morality, which includes moral judgment, standards and rules of conduct

(Parboteeah & Cullen 2013). Moral Judgments may relate to decisions on fair,

honest and competent pricing of products, while standards emphasize providing the

appropriate service and product offerings of the expected quality and required

quantity at the appropriate places and times.


Ethics in business refers to standards of right or wrong behavior when dealing with

the company’s various stakeholders including customers, employees and vendors.

Ethics can be referred to as an unwritten codes or principles and values that govern

decisions and actions within a company. In the business world, the organization's

culture sets standards for determining the difference between good and bad decision

making and behaviour. In the most basic terms, a definition for business ethics

narrows down to knowing the difference between right and wrong and choosing to

do what is right. The phrase 'business ethics' can be used to describe the actions of

individuals within an organization, as well as the organization as a whole,

(Marcoux, 2003).

According to Victor and Maurice (2012) discipline is the use of penalties to make

people obey orders and live up to the game and that when people break the rules,

they are brought to see the error for improving performance by applying some form

of punishment. It is also a punitive actions or measures taken by an organization to

correct workers. Siagian (2005) also defined discipline as a form of employee

training that aims to improve and establish the knowledge, attitude and behavior of

employees. Therefore, discipline is a punishment enforced by management to

employees for wrong doing in an organization to ensure proper respect or

obedience.

Tschannen-Moran and Hoy (2000) defined trust as one party’s willingness to be

vulnerable to another party based on the confidence that latter party is benevolent,

reliable, competent, honest and open. Also, trust is the key component of successful

working relationships between leaders and followers (individuals more general)

that enables cooperation helps to manage differences, encourages information

sharing and increases openness and mutual acceptance (Den hatong, 2003). Welch,

Hinnantand and Moon (2005) see trust in public institutions as a means to which

personnel honour are relate to administrative rules, standards, laws and regulations

relating to provision of services and information so as to enhance proper code of

conduct.

Concept of Workplace Deviance Behavior

Workplace deviance behavior or counterproductive work behaviour (CWB) has

been conceptualized as that behaviours that are unproductive, damaging to

organizational goals and harmful to the organization by directly affecting its

functioning or property, or by hurting employees in a way that will reduce their

effectiveness (Mann, 2012; Klotz & Buckley, 2013). Generally, CWB connotes

behaviours that are harmful and directly affects organizational functioning or


property by impacting on employees in a way that reduces their effectiveness (Roy,

2012). Other researchers have labeled CWB as antisocial organizational behaviour,

organizational misbehavior, organizational deviance, employee withdrawal,

dishonesty, dysfunctional behavior, counterproductive behaviour (Everton, 2007).

Spreitzer and Sonenshien (2004) identified positive deviant workplace as non-

compliance with dysfunctional directives and criticizing incompetent superiors.

These dimensions of positive deviant workplace behavior are expected to benefit

the organization (Appelbaum and Matousek, 2007). Positive deviant behavior must

be praiseworthy and must focus on actions with honorable intentions, irrespective

of the outcomes. This positive deviant workplace behavior can be classified as a

pro-social type of behavior: organizational citizenship behaviors, whistle blowing,

corporate social responsibility and creativity/innovation. Apart from the

contributions of positive deviant workplace behavior, this research however,

focuses on the negative deviant workplace behavior. This is because the negative

deviant workplace behavior aspect may be very disadvantageous to organization

and further reducing individual performance.

Empirical Reviews of Related Literature

Sule-Dan (2015) conducted a study on ethics which investigate the role of

discipline on organization effectiveness in the public sector with a specific

reference to Nigerian Custom Service. The study source of data collection was

primary data with the use of questionnaire. The sample population of the study was

136. The study used frequency, percentage and chi-square for testing the

hypothesis. The study found that organizational discipline has a positive significant

impact on organization effectiveness in Nigerian Custom Service (NCS). The

study’s limitation is based on the fact that it adopted a lesser technical tool of

analysis.

Mulyanto (2015) examined the influence of discipline, working environment,

culture of organization and competence on workers performance through

motivation, job satisfaction in Regional Development Planning Board Indonesia.

The researcher used primary data and questionnaire were distributed, a sample

population of 34 employees was used for this study, the study used analysis

instrument such as validity test, reliability, linear regression analysis, t-test, f-test

coefficient determination to analyze the influence of several independent variables

on one dependent variable. The findings show that the use of discipline, working

environment, culture of organization and competence variables are not effective.


The study focused more on working condition as a major factor in ethic instead of

the morality of employee activities.

Mensah, Delle and Nmai (2015) conducted a study on ethical climate as a predictor

of counterproductive work behavior and turnover intension and also investigated

the extent to which level of education mediates the relationship amongst ethical

climate and counterproductive work behaviours. Predictive co relational research

design was used in which data were gathered from 276 respondents from the

Ghanaian service sector via reliable questionnaires. The hypotheses were tested

with hierarchical multiple regression and standard regression tests. The study found

that ethical climate did not significantly predict counterproductive work

behaviours, but the relationship between ethical climate and counterproductive

work behaviours was partially mediated by level of education. It was observed that

ethical climate significantly and negatively predicted turnover intentions. The study

concluded that there are significant implications for the creation of positive ethical

climate in Ghanaian organizations. The study recommended that Future researchers

should consider investigating the extent to which ethical leadership and

organizational culture mediate or moderate the relationship between ethical climate

and workplace behaviours in Ghanaian organizations.

Olalekan, Omotayo, Olubasayo and Adenike (2015) assessed workplace deviant

behaviors and its implication on organizational performance in Nigeria. The study

further examine the scope, causes, consequences and managerial strategic approach

to various forms of attitudes and behaviors portrayed deliberately by employees at

the workplace and why employees’ engage in the unethical acts. The study

extensively reviewed current literatures on existing body of empirically based

studies of the construct. The findings of the study showed that workplace deviant

behaviors had adverse effects on job performance; as such effort must be

emphasized to prevent workplace deviance. The study conducted an extensive

empirical review of previous scholars and focused more on performance.

Haruna, Joseph, Samson and Gabriel (2016) conducted a research on the causes

and effects of sexual harassment on the performance of female employees in Kogi

State, Nigeria. The study appraised the causes and effects of sexual harassment and

the extent to which it affects employee productivity. Questionnaire was the

instrument for data collection and data collected was analyzed using simple

percentage, while hypothesis were tested with the aid of SPSS. Result showed that

women at the lower level are mostly harassed and that affect their performance in

the organization. However, the research focused on sexual harassment which is a


form of one of the four categories of workplace deviance, while the present study

assessed the effects of business ethics on the four categories of workplace deviance

behavior. The study focused on a single variable in workplace deviance to provide

a decisive conclusion which will be insufficient.

Peikani and Shamshiri (2016) evaluated the relationship between organizational

trust which has to do with ethics and employee productivity, mediating role,

organizational citizenship behavior in Isfahan social security Iran. Qualitative

approach was used; questionnaires were distributed among 234 employees which

was the sample of the study. The total population of the study was 580, and

regression analysis was used. The result showed that organizational trust on

employee productivity with the mediating role of organizational citizenship

behavior is positively significant. The study centered on only the social security

organization of Isfahan in Iran, if organizations in other sectors were used, the result

could be affected. The study was conducted outside Nigeria which provides a

variation of location.

Anthony (2017) studied the effect of discipline management on employee

performance in county education office of Turkana County in Kenya. The main

objective of the study was to investigate the effect of disciplinary management on

employee performance in Kenya. Primary data was used with the help of

questionnaire using a sample of 171 employees. Also, quantitative and qualitative

data were used and were analyzed using multiple linear regression model to

determine the effects of discipline management on employee performance in an

organization. The findings of the study revealed that disciplinary management led

to promotion of employees. This study provides evidence from firm-specific about

business ethics. The study used linear regression which is more of a one on one

variable than multiple regression.

Theoretical Review

Affective Events Theory (AET)

Affective event theory was developed by Howard and Cropanzano (1996) to

explain how emotions and moods influence job performance and job satisfaction.

The theory propounds that the proximal causes of effective reactions are

organizational events. This indicates that people often react emotionally to things

that happen to them in work settings (Weis & Cropanzano, 1996). The theory

explains the occurrences of positive and negative events during the workday that

can affect an employee’s emotions and job satisfaction. AET does not consider any


outside influences but how the work environment emotionally affects employees.

The theory increases the understanding of association between employees and the

way they react to things that happen to them at work. AET advocates that influence

or attitude on the job is an essential element of job attitudes and an essential

predictor of some job dealings (Weis, 2002).

Moods or emotions at workplace generally fall into positive (good) category and

negative (bad) category. The positive moods are individual feelings that are

favorable to the attainment of organizational goals, while the negative moods are

those that are perceived to be detrimental to the achievement of organizational goals

(Larsen & Dickson, 2004).

Social Strain Theory

The social strain typology theory was propounded by Robert (1938). The theory

propounds that social structure may influence individuals to commit crimes. Strain

refers to the differences between culturally defined goals and the institutionalized

means available to achieve these goals; these strains can insinuate social structures

within the society that compels individuals to commit offence. Robert (1938)

proposes a typology of deviance that is based on employee’s motivation to comply

to organizational cultural goals and workers believes on how to attain the goals.

The theory also posit that there are four types of deviance; conformity, innovation,

retreatism, ritualism and rebellion. Robert (1938) also explains that employees can

turn to deviance in response to their perceived inequality, unfair treatment, conflict

of interest, work related stress through work overload and poor remuneration

among others which may result in employees sabotaging organizational property,

stealing, late coming to work, working slowly deliberately and taking unnecessary

breaks.

This study is underpinned by the Affective event theory, because the theory

explains the occurrences of positive and negative events during the workday that

can affect an employee’s emotions and job satisfaction and it does not consider any

outside influences, but how the work environment emotionally affects employees.

Methodology

The study adopted the use of survey research. This means that questionnaires

will be given out to elicit information from the population and sample of the study.

The purpose of this tactics is to simplify from a representative sample to a whole

population.


The population of the study will comprise of all the permanent staff of Honeywell

Flour mills Nigeria, Northern Noodles and Nigeria Bottling Company as at 2nd

April, 2019. The total population is one thousand, three hundred and seventy-

eight staff 1378 from the Human Resource Management. The Kerjcie and

Morgan (1970) Sample size determination table is used to determine the

sample of this study. The total population is 1378 as obtained from the HR

department in food processing companies namely; Nigerian Bottling Company,

Northern Noodles, Honeywell and flour mills in Kaduna metropolis. Sample size

formula for arriving at a finite population is;

𝑆 =x2NP(1 − P)

d2(N − 1) + x2P(1 − P)

𝑆 =1.9621378×0.5(1−0.5)

0.052(1378−1)+1.9620.5(1−0.5) =297

Where;

S = required sample size

X = z value (e.g. 1.96 for 95% confidence level)

N = population size

P = population proportion (expressed in decimal) (assumed to be 0.5) 50%

d = degree of accuracy (5%) expressed as a portion (0.05); it is margin of error.

Therefore, the sample size of the study is 297

The source of data for this study is the primary source. The method to be used

for collecting data is the modified version of the Bennet and Robinson (2000).

The use of 5-point scale Likert will be used for the collection of data from the

respondents. The tool for analysis in this study is multiple regression, where

by the regression is based on models on each dependent to be analyzed in

relation to the singular independent variable.

The model is captured from the study of Olalekan, Omotayo, Olubusayo, and

Adenike (2015) on workplace deviance behavior, but modified by the

researcher as:

WDB = 𝑓(𝐵𝑈𝑆𝐸𝑇) ………………………………………………...1

The dependent variable production deviance is a function of the independent

variable, which is business ethics.

In equation form is represented as follows:


WDB: α + β 1 JTC+ β2DCP + β3 TRS + ei…………………………..…………….…2

Where:

BUSET = Business ethics

WDB= Workplace deviance behavior

JTC= justice

DCP = discipline

TRS = trust

e= Standard Error of Estimate

α= Constant or Intercept

β1– β3= Coefficient of independent Variable

Discussion of the Study

This section explains the analysis of the collected data from the use of descriptive

statistics, correlation matrix and regression analysis to describe the nature,

relationship and impact the independent variables have on the dependent variable.

Descriptive Statistics

The descriptive statistics of the data collected for the study is presented and

discussed in this section. Workplace deviant behaviour (WDB) has a minimum

value of 1 and 5 as the maximum value, this indicates that 1 is the lowest value in

the data set, while 5 is the highest value in the data set which signifies that there is

no serious outlier issues in the data set. The average value of the WDB is 3.01 with

standard deviation of 1.297, signifies that the data deviate from both side of the

mean value by 1.297 approximately. This implies that there is a bit dispersion of

the data from the mean, because of the value of standard deviation which is close

to the mean. The kurtosis value of -1.113 also suggests that majority of the

observations are lower than mean, as such the data meet the Gaussians distribution

assumption. Similarly, the coefficient of Skewness -0.38 implies that the data is

negatively skewed, and thus, the data did not meet the symmetrical distribution

assumption.

Discipline (DCP) has no elements of outliers’ issues in the data set, because the

minimum and maximum values in the data set are 1 and 5 respectively. On average,

the DCP in the sample Food and Beverages Companies is 3.05 with standard

deviation of 1.28. That is, the deviation from the mean is about 1.28 at best. The

value of Skewness 0.011 implies that the data is positively skewed, and therefore

does not conform to the symmetrical distribution requirement. Moreover, the value


of Kurtosis -1.065 also indicates that the DCP data meets the Gaussians distribution

assumption.

Trust (TRS) is 2.93 with standard deviation of 1.297, implying that the deviation

from the mean is 1.30 in the sample Food and Beverages Companies, with

minimum and maximum values of 1 and 5 respectively, which did not indicate the

sign of outlier issues and will not cause any problem to the inferential statistics. The

skewness value 0.051 indicates that the data is positively skewed, that is, the data

did not meet the symmetrical distribution requirement. Similarly, the kurtosis of

1.094 implies that the Gaussians distribution is met.

Correlation Results

In this section, the result of the Pearson Correlation Coefficients of the variables of

the study is presented. The correlation matrix is used to determine the degree of

association between independent variables and the dependent variable. It is also

used to identify whether there is a relationship between independent variables

themselves, and to detect the possibility of Multicolinearity amongst the

explanatory variables. This is necessary so that a broader picture than we could

have got when regressed separately against performance would be obtained.

Discipline (DCP) has a strong negative relationship with workplace deviant

behaviour (WDB) for the value of -0.579; Trust (TRS) has a weak negative

relationship with workplace deviant behaviour (WDB) with the value of -0.284.

Regression Results

In this section, the regression results of the models of the study are presented and

interpreted. The hypotheses formulated for the study are also tested from the results

as presented.

Impact of Discipline on Workplace Deviant Behaviour of Food and Beverages

Companies

The impact of DCP on WDB of Food and Beverages Companies is found to be

significant and statically has a negative effect on WDB. This can be confirmed by

a coefficient value -0.55, which is statistically significant at 1%. This implies that

for every 1% decrease in DCP the WDB of Food and Beverage Companies will

Increase by 0.55. In line with this, it provides evidence to fail to reject the null

hypothesis; which states that DCP has no significant impact on WDBF of Food and

Beverage Companies. The result is statistically significant at 99% confidence level.


The findings are in line with Kuye and Sulaimon (2011), Ndabahaliye (2013) and

Rehman, Khalid and Khan (2012).

Impact of Trust on Workplace Deviant Behaviour of Food and Beverage

Companies

The impact of TRS on WDB of Food and Beverage Companies is found to be

significant and statistically has a negative effect on WDB. This can be confirmed

by coefficient value of -0.125 with a p-value of 0.024. This implies that for every

1% increase in TRS, the WDB of Food and Beverage Companies will increase by

0.125. This provides evidence of rejecting the null hypothesis, which states that

TRS has no significant impact on WDB of Food and Beverage Companies. The

findings are in line with Nwosu, Obidike and Okezie (2015) and Donatus (2011).

Cumulative result shows that the coefficient of determination (R2) has a value of

0.350. This indicates that the independent variables (DCP and TRS) were able to

explain the variation in WDB of Food and Beverage Companies to the extent of

35% only, while the remaining 65% are explained by other factors not captured in

the model. The adjusted R2 has a value 0.343 (34.3%). This implies that DCP and

TRS cumulatively play a significant role in explaining WDB of the Food and

Beverage Companies. Following the results obtained from those eligible to fill the

questionnaire on the demographic characteristics of the respondents. The regression

result reveals fitness of the model for having F-statistics of 55.741 and a p-value of

0.0000. The implication of this result is that the overall impact of the explanatory

variables on the dependent variable is significant at 1% level, with 99% level of

confidence. Lastly, the study concludes that the business ethics plays a significant

role in explaining the workplace deviant behaviour of Food and Beverage

Companies following the result gathered from respondents upon questionnaire

returns.

Conclusion and Recommendations

The choice of examine business ethics issues is one of the most important decisions

of Food and Beverage Companies. The basic question is whether there exists an

optimal ethical management that minimizes the issues of workplace deviant

behavior of Food and Beverage Companies. The impact of TRS on WDB of Food

and Beverage Companies is found to be significant and statistically has a negative

effect on workplace deviant behaviour. This implies that for every 1% increase in

TRS, the WDB of Food and Beverage Companies will decrease by -0.125. The

impact of DCP on WDB of Food and Beverages Companies is found to be


significant and statically has a negative effect on WDB. This implies that for every

1% decrease in DCP the WDB of Food and Beverage Companies will Increase by

-0.55.

Based on the findings obtained from the results, the following recommendations

were made: firms, management and organizations should pay greater attention to

significant variables such as the effect of discipline and trust in determining their

optimal ethical issues in management by maintaining a minimal work place deviant

behavior. Food and Beverages companies should trust or show how they trust their

employee in doing their job in the organization and trust them to work effectively

and efficiently. This should be done true means of delegation of employees in

carrying out task and which as a result will indicate the level of trust and confidence

the organization have towards their employees. Companies should enforce

disciplinary committee to checkmate employee attitudes and actions in the

workplace in order to curb workplace deviant behavior. This should be done be

thorugh creating awareness programs that will educate employees about the penalty

for such deviant behaviours.

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Appendix I

Table 4.1: Descriptive Statistics of the Variables

Variables Min Max Mean SD Skewness Kurtosis

WDB 1 5 3.01 1.297 -0.38 -1.113

DCP 1 5 3.05 1.280 0.011 -1.065

TRS 1 5 2.93 1.297 0.051 -1.094

Source: SPSS 2020 output

Table 4.2 Correlation Matrix of the Dependent and Independent Variables of the

first model

Variables WDB DCP TRS

WDB 1

DCP -0.579 1

TRS -0.284 0.295 1


Table 4.3 Summary of Regression Result

Variable Co-efficient t-statistics p-value

Co-efficient 0.971 5.100 0.000

DCP -0.550 11.164 0.000

TRS -0.125 2.269 0.024

R2 0.350

Adjusted R2 0.343

F-stat 55.741

F-sig 0.000

Durbin Watson 1.854


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